HomeMy WebLinkAbout12-14-09-R -----ARZEN HILLS
Approved: January 25, 20 10
CITY OF ARDEN HILLS, MINNESOTA
REGULAR CITY COUNCIL MEETING
DECEMBER 14, 2009
6:00 P.M. - ARDEN HILLS CITY COUNCIL CHAMBERS
CALL TO ORDER/ROLL CALL -
Pursuant to due call and notice thereof, Mayor Stan Harpstead called to order
the regular City Council meeting at 6:00 p.m.
Present: Mayor Stan Harpstead; Council Member David Grant; Council;
Member Brenda Holden; Council Member Dave McClung;
Council Member Fran Holmes
Not Present: None.
Also present: City Administrator Ronald Moorse; Finance Director Sue
Iverson; Public Works Director Gregory Hoag; Community
Development Director James Lehnhoff; Civil Engineer Kristine
Giga; Parks and Recreation Manager Michelle Olson; City
Planner Meagan Beekman; Stacie Kvilvang, Ehlers &
Associates; Diane Hankee, WSB & Associates; Garrett Lysiak,
OWL Engineering; Steve Trueman, representing Clearwire
Wireless, LLC; Recording Secretary, Tina Borg.
PLEDGE OF ALLEGIANCE
1. APPROVAL OF AGENDA
Councilmember Grant requested Item 4G and 4H be pulled from the Consent
Calendar.
Councilmember Holmes requested Item 4F be pulled from the Consent Calendar.
ARDEN HILLS CITY COiJNCIL—December 14, 2009 2
1. Approval of Agenda (continued)
MOTION: Councilmember Grant moved and Councilmember Holden
seconded a motion to approve the agenda as amended. The motion
carried unanimously (5-0).
2. PUBLIC INQUIRIES/INFORMATIONAL
A. TCAAP Update
City Administrator Ronald Moorse stated a conference call was held with Kevin
Legare of the GSA on Monday, December 7 to obtain additional information
regarding the proposed license agreement for the investigation and remediation of
those parcels not currently remediated to industrial standards, and to discuss the
proposal by Ramsey County to obtain a 500 foot wide access corridor along the
western boundary of the AHATS property from County Road I through the primer
tracer area. The next GSA conference call is tentatively scheduled for Monday,
January 11, 2010.
Public
Mayor Harpstead opened the public inquiries/informational at 6:05 p.m.
Mayor Harpstead closed the public inquiries/information at 6:06 p.m.
3. APPROVAL OF MINUTES
A. October 26, 2009 Regular City Council Meeting
Councilmember Holmes requested on page 19, the fourth paragraph, the word
"several" be changed to "many".
Be October 28, 2009 TCAAP Worksession
Councilmember Holmes requested on page 3, the first paragraph, the second line,
the word "away" should be deleted.
Councilmember Holmes requested on page 5, the third paragraph, the phrase
"should have more control" should be changed to "would have less control".
Councilmember Holmes requested on page 7, the fifth paragraph, delete the words
"to see".
ARDEN HILLS CITY COUNCIL—December 14, 2009 3
3. Approval of Minutes (continued)
C. November 9, 2009 TCAAP Worksession
Councilmember Holmes requested on page 4, the second paragraph, the word
"refined" should be replaced with "remediation".
Mayor Harpstead stated that the word "remediation" should be in quotes as well.
D. November 9, 2009 Regular City Council Meeting
E. November 16, 2009 Special City Council Meeting
Councilmember Holden requested on page 3, under section 4, Council Comments
and Requests, paragraphs two, three, and four be deleted.
MOTION: Councilmember McClung moved and Councilmember Holden
seconded a motion to approve the October 26, 2009 Regular City
Council Meeting minutes, the October 28, 2009 TCAAP
Worksession minutes, the November 9, 2009 TCAAP Worksession
minutes, and the November 16, 2009 Special Council Meeting
minutes as amended and the November 9, 2009 Regular City
Council Meeting minutes as presented. The motion carried
unanimously (5-0).
4. CONSENT CALENDAR
A. Claims and Payroll
B. Motion to Adopt Ordinance 2009-013, 2010 Fee Schedule and
Adoption of Summary ordinance 2009-013 for Publication
C. Motion to Approve 20 10 Liquor License Renewal Applications
D. Motion to Approve the 2010 Employee Compensation Plan for Non-
Union Employees as presented
E. Motion to Adopt Resolution 2009-039; a Resolution Setting the City
Contribution to Employee Monthly Benefits at the Amount of$680.21
Per Month, Per Employee (Provided They Participate in the HAS Plan
or Have Family Coverage), Single Coverage Amount Only If They
Participate in the Co-Pay Plan
Rjjr�g�+l �.,_ T .,l��l,.,,,r,., �;,. Tlo,-,.,,.�,�, + �7�T1�,;..1, ;f +1, j
b"../ ,." rmrn�zT��r�xrt� �^�r�rr-�tX+
S hl1NA At +hp \Al�AN� �pp ANNII l�l Dll�TN1 A'N+C1 TA���
W1V Vl �11V IJVV Vll�.► VLI.LX%W
r ;r �2004
111V11V 11(.l(Vl
ARDEN HILLS CITY COUNCIL—December 14, 2009 4
4. Approval of Minutes (continued)
rdiL�1]' jaH j 1H tLp A 1'1'l� i AT G 77J h��T V llCll 5 •
trp+l_+o ,., T��nv�v�n �i� ovens-f��� 4 «�i i n �i
Gv �'��.1- �xrx�l�rrC�iT.T�--� -
Q1-%µYv ^i �ta r�c.4 �� Dnvtttr_Cnr T D��crT+G���GL[I� �iiv vv
Doi=hiirc.om ov4 1-a
1tV
4L0 A:nv»in] Cvoniul� c�c.oc�nmvn4n Car nol;,�,.,�„v,-,+ TT+;li4inn
v viiiii iii Liiv 1 X11Ll l.�l.�1 vrvv �Tri 7'JIrIGT1TTL%'I—rJG7IrICrC[lTl�"QXISGSG 7
��Yp1Tlatian-C���C71����t� �'v�4or ivy XXXC�iG�1�SGViizVil��"PtL D-�T'��P
Ra�=��e T o.,�o �!l T�''GGIIl1 Tlr.�+u v,,+ Drir�tor �L� ,� /"'�,�Q+ r.f Q`'� 1
D4'i'i Ti p� �iR�GiT'L'ZTiIiCGTZ[LTL�'�'J'D'�' 1T
Dar nriivnin
MOTION: Councilmember McClung moved and Mayor Harpstead seconded
a motion to approve the Consent Calendar as amended and to
authorize execution of all necessary documents contained therein.
The motion carried unanimously (5-0).
5. PULLED CONSENT ITEMS
A. Motion to Approve a Payment in the Amount of $55,975.00 (2010
Budget) to the Lake Johanna Fire Department, Which if the City's
Share of the Second of the Three Annual Payments for the
Demonstrator Ladder Truck Purchased in 2008.
Motion to Approve a Payment in the Amount of $25,774.65 (2009
Budget) to the Lake Johanna Fire Department, Which is the City's
Share of the Cost of Replacing Car I, Plus the Cost of the Capital
Reimbursement to the City of Shoreview
City Administrator Moorse stated the City has received two invoices from the
Lake Johanna Fire Department for capital expenditures in 2009. One is related to
the purchase of a demonstrator ladder truck with financing over three years. The
other is related to the replacement of Car 1, which is used by the full-time Fire
Department staff, and the reimbursement to the City of Shoreview for their payment
of more than their share of past capital expenditures.
Councilmember Holmes asked for clarification on the dollar amounts because they
do not tie into the amounts in the budget that was provided.
City Administrator Moorse clarified Invoice #305 for $25,774.65 included
$12,609.65 which is the City's portion, or 28.4% of the total $44,400.16 paid for
replacing Car 1 and the City's capital reimbursement to Shoreview for $13,165.00.
MR—DEN HILLS CITY COUNCIL—December 14, 2009 5
SA. Lake Johanna Fire Department Capital Expenditures (continued)
Invoice #308 for $55,975.00 is 28% of one-third of the new demonstrator ladder
truck purchase. This is the second installment billing payable over three years and
this is included in line item#1 on the 2009 General Equipment Capital Budget.
Councilmember McClung stated the memo states this is the second payment for
the demonstrator ladder truck and the first was in the 2009 budget cycle and Invoice
#308 is dated 2009 and states that this item is line item #1 on the 2009 General
Equipment Capital Budget. He asked if the invoice is for the 2009 payment or for
the 20 10 payment.
City Administrator Moorse clarified this would be the 20 10 payment even though
the invoice was received in 2009.
Finance Director Sue Iverson stated the City did make a payment of $58,161.00
was made under motor vehicles in the first half of the year.
MOTION: Mayor Harpstead moved and Councilmember Holden seconded a
motion to table the Motion to Approve a Payment in the Amount
of$55,975.00 (2010 Budget) to the Lake Johanna Fire Department,
Which if the City's Share of the Second of the Three Annual
Payments for the Demonstrator Ladder Truck Purchased in 2008
and the Motion to Approve a Payment in the Amount of
$25,9774*65 (2009 Budget) to the Lake Johanna Fire Department,
Which is the Citfs Share of the Cost of Replacing Car I, Plus the
Cost of the Capital Reimbursement to the City of Shoreview until
Further Clarification is Received. The motion carried
unanimously (5-0).
Mayor Harpstead requested the item be brought back to the Council with
additional clarification.
B. Motion to Adopt Resolution 2009-037; a Resolution to Adopt and
Confirm the Annual Special Assessments for Delinquent Utilities
Finance Director Iverson stated a list of utility accounts with a past due balance as
of October 2, 2009 was compiled and those customers and property owners were
notified in early October of their delinquent account status and asked to pay the
delinquent balance by November 30, 2009. Utility accounts with an unpaid balance
after November 30 would be certified to Ramsey County to be added to property
ARDEN HILLS CITY COUNCIL—December 14, 2009 6
SB. Annual Special Assessment for Delinquent Utilities (continued)
taxes payable in 2010. The certification amount is equal to the unpaid delinquent
balance and an eight percent penalty.
Councilmember Grant asked if the word "annually" should be inserted after 8% in
the Resolution.
Finance Director Iverson clarified that the City adds 8% to the outstanding
amount then sends this to the County. There is no additional interest charged
because this amount is due in one year. When the property owner pays their
property taxes for the year, their account is then brought back to zero. If these
customers are delinquent again in the next twelve months they would be certified
again. The amount is added to the property taxes just like any other special
assessment.
Councilmember Grant clarified that the list being presented contains those
property owners and customers that have outstanding balances from the last twelve
months only.
Finance Director Iverson stated this is correct. She also stated that there may be a
misconception that the amount paid for special assessments may be taken as
deductions on their taxes and that is not the case.
Councilmember Grant asked for clarification on Item 2, under the fourth Whereas
in the Resolution.
Finance Director Iverson stated after the City Council adopts this assessment it
will be sent to Ramsey County where it will be put on the assessment roll for the
property. When the property owner gets their property tax statements the
delinquent utility amounts plus the eight percent will show up as a special
assessment and will be payable during 2010. If the property is sold, the lien or
special assessment would have to be paid off.
Councilmember Grant verified that the City would not be able to use this list as a
tool in making determinations for such things as land use requests or withholding
payments to vendors.
Community Development Director James Lehnhoff stated this was correct.
Councilmember Holden clarified that the City could not withhold payment to a
vendor even if that vendor owed the City money.
ARDEN HILLS CITY COUNCIL—December 14, 2009 7
SB. Annual Special Assessment for Delinquent Utilities (continued)
Finance Director Iverson stated the City could have this option if it were written
into the City ordinances.
Councilmember Holden asked if Staff watches to be sure that the outstanding
balances are paid from year to year.
Finance Director Iverson stated Staff does monitor this. Staff is also looking at
the ordinance and will be bringing something to the Council that would allow the
delinquent accounts to be certified on a quarterly rather than an annual basis. This
would assist the City in those situations where the property has gone into
bankruptcy before the City was able to place a lien on the property.
Councilmember Holmes asked if the City had the option to turn off the water to
those properties that did not pay their water bill.
Finance Director Iverson stated the City could look into this and it was possible to
turn off the water.
Councilmember Grant stated on the certification page the Resolution number
should be changed from 2009-37 to 2009-037. He asked if the October notices that
were sent to the delinquent accounts specified special assessments were not tax
deductible.
Finance Director Iverson stated the letter sent out did not state that special
assessments were not tax deductible.
Councilmember Holden asked if the eight percent interest charge could be
increased.
Finance Director Iverson stated that this was a State statute and she would verify
this with the League of Minnesota Cities and get back to the Council.
Councilmember Holmes stated the ordinance could include a hearing process for
those residents and companies that are having problems.
Finance Director Iverson stated Staff is researching and going over the Ordinance
and will be bringing something to the Council at a future work session for
discussion.
AR-DEN HILLS CITY COUNCIL—December 14, 2009 8
5B. Annual Special Assessmentfor Delinquent Utilities (continued)
Mayor Harpstead stated that having the assessments done quarterly would make
sense and Councilmember Grant had a good suggestion of notifying the residents
that these assessments are not tax deductible. He stated he would not go as far as
turning off the utilities, but it's worth looking into
Councilmember McClung stated there appeared to be some problem areas looking
at the list of delinquent accounts. He would be in favor of pursuing these funds.
MOTION: Councilmember McClung moved and Councilmember Grant
seconded a motion to Adopt Resolution 2009-037; a Resolution to
Adopt and Confirm the Annual Special Assessments for
Delinquent Utilities. The motion carried unanimously (5-0).
C. Authorize Staff to Enter into a Lease Agreement with Pitney
Bowes to Lease a RISO HC5500 Document Printer at a Cost of
$511 Per Month
Finance Director Iverson stated currently one of the laser printers is in need of
replacement and the color printer is also not meeting the City's needs. Staff has
researched many options and found that the City has an opportunity to get a
promotional offer at a 50% discount for a HC500 high speed inkjet printer from
Pitney Bowes for $511 per month or $6132.00 annually and the offer was good
until December 23, 2009.
Councilmember Grant stated Staff has researched several options but these were
not presented to the Council. He stated that the contract was for 60 months and this
would make it a $30,000 printer. He stated that the cost analysis and savings
calculations were not presented to the Council in order to determine if this would be
a good option for the City. He asked what the maintenance would be for this
printer.
Finance Director Iverson stated the maintenance would be minimal and the City
would not be opting for the maintenance contract due to this.
Mayor Harpstead stated the specs for the printer showed that the maximum paper
size would be 13 x 17 but it also says that it will only do 11 x 17. He stated that the
Council would need better clarification of the paper size that this printer would be
able to do. He also asked if there was a maximum number of images per year
before a penalty were imposed.
AR-DEN HILLS CITY COUNCIL—December 14, 2009 9
SC. Authorization to Lease a RISO HC5500 Color Printer (continued)
Councilmember Holden asked what the cost of the ink cartridges were and how
many prints could be obtained per cartridge.
Finance Director Iverson stated there would be no limit on the number of pages
printed per year and the cost of the cartridges would be less than what the City is
currently paying for printing costs.
Mayor Harpstead clarified that other departments and Staff members would be
using this printer as well. He asked if other departments were in favor of this
printer and felt this was the best machine to meet their needs.
Finance Director Iverson stated that this machine was the one that would make
sense but there had been no analysis on what other departments felt would be the
best machine.
MOTION: Councilmember Holden moved and Councilmember Grant
seconded a motion to Authorize Staff to Enter into a Lease
Agreement with Pitney Bowes to Lease a RISO HC5500 Document
Printer at a Cost of$511 Per Month.
Councilmember McClung stated he would not vote in favor of this motion at this
time because he had not seen enough analysis to determine this would be the best fit
for the City.
Councilmember Grant stated he would support this motion at this time but for
future lease agreements he would like to see more analysis provided to the Council.
Councilmember Holmes stated it is important for the City to have a color printer
and would support this motion at this time.
Councilmember Holden asked how often the City needs to have color copies.
Finance Director Iverson stated a couple of examples would be for maps for the
City Council and engineers and for the City's budget books.
Councilmember Grant asked how long the offer was good for.
Finance Director Iverson stated the offer was good until December 23, 2009.
ARDEN HILLS CITY COUNCIL—December 14, 2009 10
SC. Authorization to Lease a RISO HC5500 Color Printer (continued)
Mayor Harpstead stated he would not support this at this time because other
departments had not had a chance to provide input on this piece of equipment and
determine if it would meet their needs.
Councilmember Grant stated he would like to look at the analysis before making a
decision.
MOTION: Councilmember Grant moved and Councilmember Holden
seconded a motion to table the motion to Authorize Staff to Enter
into a Lease Agreement with Pitney Bowes to Lease a RISO
HC5500 Document Printer at a Cost of $511 Per Month to the
December 21, 2009, City Council Meeting. The motion carried
unanimously (5-0)1.
6. PUBLIC HEARINGS
A. Truth In Taxation Hearing
Finance Director Sue Iverson explained why taxes vary from year to year
including the market value of properties, referendums which are approved and
Federal and State mandates. She also reviewed fiscal disparities, limited market
value, and tax increment financing. She explained how property tax was calculated,
the property tax impact, and the 2010 key budget elements. She provided the
Council with a tax rate comparison with the surrounding areas, and the City's
proposed general fund revenue and estimated expenditures, as well as the overall
City budget for revenues and expenditures.
Mayor Harpstead opened the Public Hearing at 7:15 p•m•
Mayor Harpstead read a letter received from Ms. Dorothy McClung, 4370 N.
Snelling Ave., Arden Hills, which stated concerns about the property tax increase
that is being proposed by the Council. She expressed that the increase was
excessive.
Manor Harpstead closed the Public Hearing at 7:18 P.m
Councilmember Holden asked what was included in the Emergency Management
category.
Public Works Director Greg Hoag stated that this category included a portion of
his salary and about $25,000 for the replacement of a siren in case one fails.
AR—DEN HILLS CITY COUNCIL—December 14, 2009 11
6A. Truth in Taxation Hearing (continued)
Councilmember Holden asked if this was a new category.
Finance Director Iverson clarified that this category was created in 2008.
Councilmember Grant stated he had done what Ms. McClung had done and
evaluated his own property taxes from 2005 to the present. He found that the
largest portion of increase was for the schools. Compared to the rate of inflation,
the City's increases were under the rate of inflation, the County's rate of increases
were at the rate of inflation and the school's rate of increases were three times the
rate of inflation. He stated that there was a decline in inflation in 2009 and the City
is requesting an increase in taxes.
B. Public Hearing for Modification to the Tax Increment Financing
Plan for Tax Increment Financing District No. 3 (A Housing
District) Within Development No. 1
Finance Director Iverson stated the Cottage Villa TIF district is set to expire on
December 3 1, 2009. State Statutes allow the City to extend the district until
December 3 1, 2019. There has been some discussion with the City Council about
extending the district and possibly using the remaining funds for other housing
projects, such as the Arden Village, the Old City Hall Property, or the B2 District.
Ms. Stacie Kvilvang, Ehlers & Associates, presented the background of the TIF
District for the Council. She clarified that the reason the City had to have a public
hearing was because the City was increasing the budget. She also reviewed the
boundaries of District No. 1 and District No. 3.
Councilmember Grant stated generally TIF Districts had to spend the funds from
the TIF District inside the district but this is not the case in this particular situation
because the rules changed in 1997. He asked Ms. Kvilvang to clarify this for the
Council.
Ms. Kvilvang stated that the rules did change in 1997. Other housing legislation
has happened that states for housing districts that don't have pooling limitations the
City has the ability to use any of the funds from that housing district for affordable
housing anywhere else in the district. Typically 75% of the funds would have to be
used inside the TIF District but this is not the case in this situation. The City can
use the funds within the boundaries of Development District No. 1.
AR-DEN HILLS CITY COUNCIL—December 14, 2009 12
6B. Public Hearing for the Modification to the Tax Increment Financing Plan for
Tax Increment Financing District No. 3 Within Development District No. 1
(continued)
Mayor Harpstead clarified that the TIF money could only be used for affordable
housing and if it was not used it would be returned to the taxing districts. He also
clarified that extending the district did not guarantee that the money would be used.
Ms. Kvilvang stated that this was correct. Any proposal for assistance would need
to come before the City with a "but/for" analysis and the terms and conditions of
the assistance would be outlined in the development agreement that the City would
have to approve.
Mayor Harpstead asked what the cost savings were between extending the current
district and creating a new one.
Ms. Kvilvang stated there was no cost savings, but extending the district would
keep it open for an additional ten years rather than a potential twenty five years on a
new district.
Councilmember Grant clarified that the area of District No. 1 included County
Road F, the north side of County Road E and a part of TCAAP.
Mayor Harpstead pointed out that District No. 1 does not include the former City
Hall property.
Mayor Harpstead opened the Public Hearing at 7:34 p.m.
Manor Harpstead closed the Public Hearing at 7:35 p.m.
7. NEW BUSINESS
A. Adopt Resolution 2009-042; A Resolution Adopting a Modification
to the Development Program for Development District No. 1; and
a Modification to the Tax Increment Financing Plan for Tax
Increment Financing District No. 3
Finance Director Iverson stated that Item 7A was the motion for approving the
modification to the tax increment financing plan for tax increment District No.3 and
the Council had just completed the public hearing for this item. She asked Ms.
Kvilvang if the boundaries for the district could be modified to include the Old City
Hall property and the B-2 District.
A—R-DEN HILLS CITY COUNCIL—December 14, 2009 13
7A. Motion to Adopt Resolution 2009-042; A Resolution Adopting a Modification
to the Development Program for Development District No. 1; and a Modification to
the Tax Increment Financing Plan for Tax Increment Financing District No. 3
(continued)
Ms. Kvilvang stated that in the future if the City is looking to provide assistance in
these areas the Development District could be modified and it would be a straight
forward process.
Councilinember McClung asked what the process would be for modifying the
boundaries of the district.
Ms. Kvilvang stated that the process would include a public hearing to let the
public know what parcels were being added to the district and the taxing
jurisdictions would need to be notified and have the opportunity to respond. The
costs involved would be limited to Staff time and the costs of holding a public
hearing and filing the changes with the OSA and the County Auditor.
Councilinember Holden stated that there are projects listed in the memo that the
Council is not aware of such as a mixed use development on the Old Holiday Inn
property.
Finance Director Iverson clarified that the projects listed in the memo were only
potential projects and that there were no official projects at this time. Staff only
provided a couple of examples of where the funds could be used for the Council to
reference. The funds would not be limited to these sites,
Councilinember Grant asked if this modification would be subject to approval by
either the school board or the County.
Ms. Kvilvang stated that it would not be.
Finance Director Iverson stated that they had been informed and did not have any
objects.
MOTION: Councilmember McClung moved and Major Harpstead seconded
a motion to Adopt Resolution 2009-042; a Resolution Adopting a
Modification to the Development Program for Development
District No. 1; and a Modification to the Tax Increment Financing
Plan for Tax Increment Financing District No. 3.
ARDEN HILLS CITY COUNCIL—December 14, 2009 14
7A. Adopt Resolution 2009-042; A Resolution Adopting a Modification to the
Development Program for Development District No. 1; and a Modification to the
Tax Increment Financing Plan for Tax Increment Financing District No. 3
(continued)
Councilmember Holden stated she would vote against this motion at this time.
Residents would like to see lower taxes and this would be one way to assist in
achieving this goal. The Council has repeatedly stated that they do not like TIF yet
they are looking at extending this so she would not be supporting this.
Councilmember Holmes stated it is important to consider affordable housing and
extending this district would be a tool that the City could use in the future. At this
time she would support this motion.
Councilmember McClung requested Staff look at the items that are on the agenda
and not make duplicate copies but rather put the two items together.
Mayor Harpstead stated he would support this motion. By extending the district
the City could accomplish additional affordable housing.
Councilmember McClung stated he would also support this motion. There is an
opportunity to do something in the area of affordable housing and this is a tool that
the City could use. Not extending the district will not necessarily lower future
taxes.
Councilmember Holden stated she agrees that it would not necessarily lower taxes
but she does have a hard time with having hard-working residents pay for
affordable housing.
Councilmember Grant clarified that by voting in favor of this motion he is not
predisposing future votes for using the funds.
The motion was called to a vote.
The motion carried (4-1).
Ayes: Mayor Harpstead, Councilmembers McClung, Grant,
Holmes
Nays:Councilmember Holden
ARDEN HILLS CITY COUNCIL—December 14, 2009 15
B. Approve Resolution 2009-038; A Resolution Receiving the 2010
Pavement Management Program Feasibility Report and Ordering
Public Hearing for Improvement on January 11, 2010
Civil Engineer Kristine Giga stated at the October 12, 2009, meeting, the City
Council approved Resolution 2009-027 ordering the feasibility report for the 2010
PMP, and authorizing Staff to contract with WSB and Associates, Inc., to complete
the report.
Ms. Diane Hankee, WSB & Associates, reviewed the feasibility report, the
background for the project being proposed and the proposed improvements to each
area. The concerns of the residents were covered including road width, parking, the
types of curbs, and problems with roots. She also outlined the proposed utility
improvements and storm water improvements. The estimated project costs were
outlined for two different options and the funding for these two options was
reviewed, including assessment information. The two options were a State Aid
option where Valentine Avenue would be reconstructed to a width of 26 feet and
would include State Aid funds, option 2 does not use State Aid funds and Valentine
Avenue is only twenty-four feet wide.
Councilmember Holden asked for an explanation on the sewer replacement
Ms. Hankee stated if a resident would like to have their services from the main line
to the right-of-way line replaced at the time the road and other sanitary sewer lines
are being replaced, it could be arranged with the contractor to do this work for the
resident at the resident's expense. Replacing the line from the main line to the
right-of-way line would save on restoration costs to the road in the future if
something were to happen to the line.
Councilmember Grant asked what the lines were built with currently.
Ms. Hankee stated the existing sanitary sewer in the Valentine area is clay and the
other areas were PVC pipe.
Mayor Harpstead clarified that in the older neighborhoods the homes were
attached to the City's sewer system with clay pipes and this proj ect may be a good
time for residents to make improvements to this connection. He clarified that this
would be at the resident's expense, but the work could be arranged with the
contractor that the City has working on this project.
Ms. Hankee clarified that WSB would work with the City's contractor to arrange
for these improvements; but at this time they are looking at limiting this to just the
area from the main to the right-of-way line. If the resident would like to have all of
ARDEN HILLS CITY COUNCIL—December 14, 2009 16
7B. Resolution 2009-038; Receiving the 2010 Pavement Management Program
Feasibility Report and Ordering a Public Hearing (continued)
their service replaced then that could also be looked at. She stated that this was
something that was still being worked out and asked if the City could provide
direction regarding this matter.
Councilmember Holden stated that this would need to be talked about in greater
detail because the City has experienced problems in the past where a contractor has
promised things to the residents and when the City project is complete, the
contractor leaves without finishing what they had said they would for the resident.
Councilmember Grant asked what the difference is between a biofiltration basin
and an infiltration trench.
Ms. Hankee stated they basically function the same. Sometimes there will be a
pipe system below that will help get the water out, depending on the soil with the
biofiltration basins. At this time it leaves flexibility in design to have them both be
options. Depending on how the biofiltration basin and the infiltration trench are
designed, they could both have inlets and outlets to a catch basin.
Councilmember McClung clarified that Option 1 included State Aid funds and
Option 2 did not. The only difference between the two options was the use of State
Aid funds and the width of the road. The wider road with parking restrictions
would use State Aid funds. He stated that currently emergency services such as the
fire department would like to see parking restrictions on narrow roads.
Councilmember Holden asked for clarification on what Staff had told the residents
about the use and distribution of State Aid funds. In the past the City has used these
funds to pay the City's portion of the project.
Ms. Hankee stated the residents were told the City has in the past used the State
Aid funds for the City's portion of the project and the residents asked if they could
ask the Council to use these funds against the assessment instead.
Civil Engineer Giga clarified that the residents were told that any changes to how
the funds would be applied is determined by the City Council. She further clarified
that the City's Assessment Policy does not specify how State Aid funds are applied
when it is a State Aid road.
Ms. Hankee stated the assessment rate table outlines the potential assessment rates
for the two options and they are both similar numbers with little difference between
ARDEN HILLS CITY COUNCIL—December 14, 2009 17
7B. Resolution 2009-038; Receiving the 2010 Pavement Management Program
Feasibility Report and Ordering a Public Hearing (continued)
them. The assessment rates are on a per unit basis and the assessments are 50% of
the cost including construction and engineering costs. Option 1 assessments are
estimated at this time to be $8500-$9200 and the assessment costs for Option 2
would be $8400-$9000. The assessment rate for Janet Court/Katie Court/Katie
Lane mill and overlay project is estimated at $2300.
Councilmember Holden asked if the project would bid as two different projects;
one for the Valentine neighborhood reconstruction and one for the Katie
Court/Janet Court mill and overlay or if these would be done as one project.
Civil Engineer Giga stated Staff anticipates bidding the project as one project.
Ms. Hankee reviewed the schedule for the both the public process and the actions
of the Council which would include a public hearing on January 11, 2010 and
assessment hearing in May. After the public hearing, the City Council could order
plans and specifications or deny the project. If the project is approved she reviewed
the schedule of events including receiving bids and construction timelines.
Councilmember Holden asked how many trees would need to be removed in the
project.
Ms. Hankee stated there should be little or no impact to trees with the different
road widths. The only potential impact would be the water main improvements on
Valentine Court and Valentine Avenue from Valentine Court to Old Highway 10.
The goal is to not move or impact any trees.
Councilmember Grant clarified that the action being requested at this time was for
the Council to receive the feasibility report and set a public hearing date for the
project. The Council was not being asked to approve the project at this time. He
also stated that the Council could deny the project at any time during the process.
Ms. Hankee stated that this was correct. The Council was not approving the
project at this time but scheduling the step in the process. The Council could
choose not to proceed with the project at any time.
MOTION: Councilmember Grant moved and Councilmember McClung
seconded a motion to Approve Resolution 2009-038,; A Resolution
Receiving the 2010 Pavement Management Program Feasibility
Report and Ordering Public Hearing for Improvement on January
11, 2010 at 7:00 p.m. The motion carried unanimously (5-0).
ARDEN HILLS CITY COUNCIL—December 14, 2009 18
C. Approve the 2010 Capital Improvement Plan (CIP) as Presented in
the Amount of$3,105,335
Adopt Resolution 2009-040* a Resolution Adopting the Proposed
2010 Budget in the Amount of$11,262,180
Adopt Resolution 2009-041; a Resolution Setting the Final Levy
for Taxes Payable in 2010 in the Amount of$3,057,666
Finance Director Iverson stated at the May 18, 2009 work session, Council
provided Staff with guidelines to initiate work and prepare a Preliminary 2010
Budget. At this meeting, the Council provided Staff with general guidelines and
based on these guidelines, a draft Preliminary Budget was presented at the August
17, 2009 work session and a subsequent work session on November 16, 2009 for
discussion. The current version of the budget reflects the changes discussed at
those work sessions. On September 14, 2009, the Council adopted a preliminary
Tax Levy in the amount of $3,057,666. The County received the certification
notice. The City held a Truth-In-Taxation hearing tonight as part of the public
information process according to Minnesota State Statues. After the adoption of the
final budget and the final levy on December 14, 2009, the City will certify the final
levy amount to the County before the end of the year. As part of the annual budget
and levy adoption process, the Council is also asked to approve the 2010 Capital
Improvement Plan (CIP). The 2011-2014 CIP will be reviewed at the January work
session and brought forward to the last .meeting in January for approval to be
included in the budget submission for the GFOA and serve as a plan to calculate the
long-range financial plan and analysis. Only the 20 10 plan is included in the budget
amounts for 20 10.
Councilmember McClung stated other than eliminating a position, which was not
going to be filled anyway, and using real numbers for insurance benefits, the City
did not really look at making any cuts to the budget.
Finance Director Iverson stated the recording secretary amount was reduced by
$3,000 and Northwest Youth and Family Services was reduced by $3000.
Councilmember McClung clarified that out of a $3,000,000+ budget the City
basically cut $6,000. As Councilmember Grant pointed out, in a year when there is
deflation, the City is proposing an increase in the levy.
Finance Director Iverson stated that these cuts were from the preliminary
proposed budget. The budget was decreased more because the Market Value
AR-DEN HILLS CITY COUNCIL—December 14, 2009 19
7C. Approve the 2010 Capital Improvement Plan; Motion to Adopt Resolution
2009-040 Adopting the Proposed 2010 Budget; Motion to Adopt Resolution 2009-
041 Setting the Final Levy for Taxes Payable in 2010 (continued)
Homestead Credit of about $66,000. Besides the Public Safety and Market Value
Homestead Credit, the City's portion of the Levy was only 0.5% increase.
Councilmember McClung clarified that the City had made up for the fact that the
Market Value Homestead Credit was cut. 1.1% of the increase is the market value
so the City is increasing the levy to make up for the fact that the State is unallotting
the City.
Finance Director Iverson clarified that what happens is the tax levy that is
certified is what is sent to the County and to the State. What happens then is when
you get a property tax statement you get a market value homestead credit and the
City does not get that money back unless the State sends that money to the City, so
the City will not get the whole levy back. The City did increase the levy to make up
for the unallotment.
Councilmember Holden stated that Staff raises were cut this year as well.
Councilmember McClung stated that other cities are finding a way to not increase
their levy for the unallotment of the Market Value Homestead Credit and making
cuts. Other cities are making more drastic cut and doing more to decrease their
budget than Arden Hills seems to be.
Finance Director Iverson stated that several of these cities are using what is called
fund balance to offset this cost.
Councilmember Holden clarified that according to the charts, Arden Hills' tax rate
increase was less than most of the surrounding communities by a significant
amount.
Councilmember McClung stated that the only concern is what Arden Hills is
doing for its residents. He clarified that he was not referencing just surrounding
communities making cuts to lower their budgets but also other cities in the State as
well.
Councilmember Grant clarified that Arden Hills does not receive HACA or LGA
funds. If these funds are unallotted it would not impact Arden Hills. Of the budget
for 2009 he asked for a projection of how under budget the City would be.
ARDEN HILLS CITY COUNCIL—December 14, 2009 20
7C. Approve the 2010 Capital Improvement Plan; Motion to Adopt Resolution
2009-040 Adopting the Proposed 2010 Budget; Motion to Adopt Resolution 2009-
041 Setting the Final Levy for Taxes Payable in 2010 (continued)
Finance Director Iverson stated that the City is typically $60,000-$100,000 under
budget but at this time she does not have those figures.
Councilmember Holden asked if the 2009 budget contained any contingencies.
Finance Director Iverson stated the 2009 budget contained a contingency of about
$6,000. She clarified that when the budget was put together the departments kept
their operating budgets flat except for petroleum type purchases and contracted
services where the City could not control the increase and the benefits.
Councilmember McClung stated the City has been consistently under budget but
they are looking to increase the levy. He stated that the City should do a better job
to match their funds with expenditures in order to keep the increases to the residents
to a minimum.
Finance Director Iverson cautioned the Council that they did unallot in 2008 the
second half of the Market Value Homestead Credit and they did unallot all the
Market Value Homestead Credit for 2009 and these items were not budgeted for.
The City will be short this money and will not have as much reserve as they would
normally and this will affect the fund balance.
Mayor Harpstead stated the fund balance is a function by which the City gets their
transfer payments. The City only receives two checks per year of property tax from
the County and they need to be sure they can operate for half a year on the fund
balance before they get another payment.
Councilmember McClung stated the Truth-In-Taxation hearing opens a lot of eyes
when you look at where a large portion of the City's general fund budget goes, to
public safety. Public safety is at a steep increase every year. A majority of the
increase in the City's levy this year is going to contractual increases in police and
fire protection. He brought in an article from the Pioneer Press dated December 12,
2009 which pointed out what some cities are paying per capita for police protection.
This article provided figures for Shoreview where they are paying less per capita for
their police/fire protection than Arden Hills is. He stated that he was not sure that
Arden Hills is getting what they are paying for in light of all the increases they have
had. He would not be able to support this budget because there are too many
questions regarding these contracts at this time.
AR-DEN HILLS CITY COUNCIL—December 14, 2009 21
7C. Approve the 2010 Capital Improvement Plan; Motion to Adopt Resolution
2009-040 Adopting the Proposed 2010 Budget; Motion to Adopt Resolution 2009-
041 Setting the Final Levy for Taxes Pay able in 2010 (continued)
Councilmember Holmes stated that if the City has an issue with their contracts
they need to correct those issues.
Mayor Harpstead stated that the chart Councilmember McClung is referencing
from the Pioneer Press points out an economy of scale. Shoreview is about two and
a half times the size of Arden Hills on a per capita basis. Shoreview typically runs
their police service with two districts worth of policing staff, one of which they
subcontract out to North Oaks. They are covering about 25,000 people with 1.8
districts worth of cars. Arden Hills pays for a full district and they only have
10,000 people.
Councilmember Grant agreed that with the size. of Arden Hills, they end up
paying a little more for services. He would not scale back on the amount of
policing. There is an item or two in the police budget that could be looked at closer
and cut back. This will be discussed under Item 8C in greater detail.
Councilmember Holden agreed with Councilmember McClung in that the City is
paying for things that they should not be. She provided an example with the Lake
Johanna Fire Department where the City paid for televisions for the fire department
and that were not purchased and the City did not receive a credit for those funds.
Things like steak figs and softball leagues should not be supported by the funds
from the City and residents but rather by a relief fund. The City ends up paying the
bill that is submitted and if those funds are not spent there is no credit back to the
city
Mayor Harpstead stated the fire department does have a clear fund balance policy
that does indicate that the fund balance has a maximum set for it and the difference
will be transferred into a capital fund, in which case it would reduce the cost of
capital expenditures. There is not an unrestricted accumulation of funds into the
fund balance.
Councilmember Holden would like to know what the budgets are in reality for
these types of services so that the City is not padding funds for organizations.
Mayor Harpstead stated he understands Councilmember Holden's concerns. In
some cases where they do make savings throughout the year these savings would
accumulate in the capital account. The City would then see a reduction in costs for
purchases based on these accumulations.
ARDEN HILLS CITY COUNCIL—December 14, 2009 22
7C. Approve the 2010 Capital Improvement Plan; Motion to Adopt Resolution
2009-040 Adopting the Proposed 2010 Budget; Motion to Adopt Resolution 2009-
041 Setting the Final Levy for Taxes Payable in 2010 (continued)
Councilmember McClung stated that with the purchase of the last two major
pieces of equipment purchased by the fire department the City did not receive any
type of credit for previous overpayments. There should have been some type of
cost reduction for the cities.
Mayor Harpstead clarified that the Council would like to review the fund balance
policy and make sure that it is being applied properly.
Councilmember Holden stated the budget was looked at in July, again in August,
and again last month. There are a lot of wants versus needs in the budget but the
residents are saying that they want benches in the parks and some of the parks fixed
up. The Council did go through the CIP and took out a lot of wants. The Council
reviewed each item so it is unfair to say that this was not looked at and pared down.
What is being presented to the Council at this time is what the Council had agreed
to. She would be willing to pare it down more if there are any ideas for this.
Councilmember Holmes stated that the Council does need to be conscientious of
the residents and their needs. According to the analysis the average change in taxes
would be minimal; $24.00 per year. Residents are also saying that they do not want
services such as snow plowing and park maintenance cut.
Councilmember Grant stated in his analysis of his taxes since 2005 the $24.00
increase this year is more than half of the total $42.00 his taxes have been increased
since 2005. This is a large increase in a year when there is deflation and high
unemployment.
Mayor Harpstead clarified that the total expenditures for the City have been level
for the last three years. Some of what is being seen in the property taxes is a shift
between the tax levy portion and the other revenue. The City has not had a robust
permitting system or process this last year and these revenues are shorter. The
Market Value Homestead Credit is in a different line as opposed to the levy line and
there is a shift back and forth a little bit. As a person looks at the $24.00 versus
$42.00 a person should look at the total dollars as well. This is a budget and as a
body the Council will need to make decisions throughout the year about
expenditures. There will be opportunities throughout the year for cost savings.
Councilmember Holden stated that the levy contains revenue from fees and some
of the fee schedules will be increased next year. Because there had not been a lot of
AR-DEN HILLS CITY COUNCIL—December 14, 2009 23
7C. Approve the 2010 Capital Improvement Plan; Motion to Adopt Resolution
2009-040 Adopting the Proposed 2010 Budget; Motion to Adopt Resolution 2009-
041 Setting the Final Levy for Taxes Pay able in 2010 (continued)
due diligence from past Councils to maintain water and sewer lines, make street
repairs, and maintain parks, the City is in a catching up phase where they are
working towards a maintenance phase. The cost to replace things will be much
greater in the future if things are not maintained now.
Councilmember Grant stated that the only way to save would be to lower the
budget.
Mayor Harpstead stated that part of the reason the City has funds in their Capital
Improvement Fund is not because the City budgets for it but because the City has
captured the overages over the years. This allows the City the opportunity to make
the improvements to the infrastructure that the residents would like. He stated that
he does agree that the City could eliminate any potential overages but then the City
should consciously budget to create the Capital Improvement Fund.
MOTION: Mayor Harpstead moved and Councilmember Holmes seconded a
motion to Approve the 2010 Capital Improvement Plan (CIP) as
Presented in the Amount of $3,105,335, a Motion to Adopt
Resolution 2009-040; a Resolution Adopting the Proposed 2010
Budget in the Amount of $11,262,180 and a Motion to Adopt
Resolution 2009-041; a Resolution Setting the Final Lew for Taxes
Payable in 2010 in the Amount of$3,057,666.
MOTION: Councilmember McClung moved to amend Resolution 2009-041;
A Resolution Setting the Final Lew for Taxes Payable in 2010 to
an Amount of $2,948,646, for a 0% increase over 2009. The
motion failed for lack of a second.
MOTION: Councilmember McClung moved to amend Resolution 2009-041;
A Resolution Setting the Final Lew for Taxes Payable in 2010 to a
1.7% increase over 2009. The motion failed for lack of a second.
MOTION: Councilmember Holden moved and Councilmember Grant
seconded a motion to amend Resolution 2009-041; A Resolution
Setting the Final Levy for Taxes Payable in 2010 to an Amount of
$3,016.,465,, for a 2.3% increase over 2009.
AR-DEN HILLS CITY COUNCIL—December 14, 2009 24
7C. Approve the 2010 Capital Improvement Plan; Motion to Adopt Resolution
2009-040 Adopting the Proposed 2010 Budget; Motion to Adopt Resolution 2009-
041 Setting the Final Levy for Taxes Payable in 2010 (continued)
Councilmember Holmes asked if the City reduced the proposed levy, would we
then be eliminating something from the budget or if this levy reduction was just
being put out there and the City would need to find cost savings equal to this
amount.
Mayor Harpstead stated that the City has two options. The City could just reduce
the amount of revenue and let the fund balance decrease by this amount or the City
could make up these funds in another revenue line. The motion at this time does
not change the budget.
Finance Director Iverson stated this could be addressed with the surplus that the
City usually has at the end of the year.
Councilmember Holden stated the City could also find other options of cost
savings to account for this reduction.
The motion to amend Resolution 200-041 was called to a vote.
The motion carried (3-2).
Ayes: Councilmembers McClung, Grant, Holden
Nays:Mayor Harpstead, Councilmember Holmes
The amended motion was called to a vote.
The motion carried (3-2).
Ayes: Mayor Harpstead and Councilmembers Grant, Holden
Nays:Councilmembers McClung, and Holmes
Councilmember Holmes suggested moving Item 8B in front of Item 8A.
8. UNFINISHED BUSINESS
B. Approve Planning Case 09-020 for a Conditional Use Permit at 2
Pine Tree Drive Based on the Findings of Fact and the Submitted
Plans as Amended by the Five Conditions Presented in the
December 14, 2009, Report to the City Council
A—R-DEN HILLS CITY COUNCIL—December 14, 2009 25
8B. Planning Case 09-020 for a Conditional Use Permit at 2 Pine Tree Drive
(continued)
City Planner Meagan Beekman stated the applicants have submitted an
application requesting a Conditional Use Permit (CUP) to install communication
antennas and related equipment on the existing Country Insurance building at 2
Pine Tree Drive. The City Council first reviewed this application on November 30,
2009. At that time, the City Council requested additional information, specifically
the color coverage maps and the letter from the applicant's engineer indicating why
the City water tower sites were not feasible. Additionally, the Council requested an
independent engineer review the application to examine the proposed location
compared to the City water tower sites. The independent engineer is Garrett
Lysiak, of OWL Engineering. He has prepared an engineering report analyzing the
date for gaps in existing and proposed coverage based on antenna locations at the
two City water tower sites and 2 Pine Tree Drive. Approval or denial of this
.conditional use permit does not indicate approval or denial of any future
applications for any other antenna sites. She provided the Council with maps that
showed the difference in coverage based on the various location options for the
antenna.
MOTION: Councilmember Grant moved and Councilmember McClung
seconded a motion to Approve Planning Case 09-020 for a
Conditional Use Permit at 2 Pine Tree Drive Based on the Findings
of Fact and the Submitted Plans as Amended by the Five
Conditions Presented in the December 14, 2009, Report to the City
Council.
Councilmember McClung clarified that the applicant was aware of the current
problems the City had with the tower located on County Road F.
City Planner Beekman stated the applicant is aware that the City is currently
working with this location to bring it into conformance with City regulations and
the original CUP that is in effect for this site. The owner of this property has
brought an application to the City and this will be coming before the City Council at
a future work session for further discussion.
Councilmember Holden asked if the CUP was issued how long it would be good
for.
City Planner Beekman stated that once the CUP is issued the applicant has one
year to apply for a building permit to install the antenna and equipment. Once the
ARDEN HILLS CITY COUNCIL—December 14, 2009 26
8B. Planning Case 09-020 for a Conditional Use Permit at 2 Pine Tree Drive
(continued)
building permit has been applied for the applicant would have 180 days to
commence the work.
The motion was called to a vote.
The motion carried unanimously (5-0).
MOTION: Councilmember Holmes motioned and Mayor Harpstead seconded
a motion to Wave the Rules and Extend the Meeting an Additional
30 Minutes to 9:30 p.m. The motion carried (4-
Ayes: Mayor Harpstead, Councilmembers, McClung, Grant,
Holmes
Nays:Councilmember Holden
A. Authorize The Purchase of a 2010 Ford F-350 From Boyer Ford
and Related Equipment from Truck Utilities Inc. for an Amount
Not to Exceed $29,294.52 Plus Tax, License, and Registration; To
enable Repurposing a Current Public Works Vehicle to Replace
the Chevrolet SIO Pick-up Currently Used for Building
Inspections, Code Enforcement, and Other Related Activities
Community Development Director Lehnhoff stated at the November 9, 2009
meeting, the City Council reviewed a proposal to replace the 1993 Chevrolet SIO
with a 2010 Toyota Prius. At that meeting, the City Council directed Staff to
research several alternatives. The alternatives that Staff reviewed were: employee
vehicle use and reimbursement, the purchase of a used Toyota Prius, and the
repurposing of a Public Works vehicle. He explained that based on their research
Staff is recommending that one of the Public Works vehicles be repurposed and a
new vehicle be purchased for the Public Works department.
Mayor Harpstead asked what the problems with the S 10 are and he also asked if
this vehicle would be stored outside.
Community Development Director Lehnhoff stated the S 10 would be stored
outside and the problems with the S 10 include problems with the brakes, the
driver's side door has difficulty closing, significant rusting, and the windshield
wipers have not been functioning properly.
ARDEN HILLS CITY COUNCIL—December 14, 2009 27
8A. Authorization to Purchase a Ford F-350 (continued)
Councilmember Holden asked if the State of Minnesota purchasing contract
would be the way to go with this purchase or if the City would get a better quote by
contacting the dealer directly.
Public Works Director Hoag stated the quote received is directly from the dealer
and is for a vehicle that is currently on the lot with government pricing. The quote
received is a good price compared to an individual purchasing the same vehicle.
Councilmember Grant stated there have been problems with the F-350 with a
plow the department currently has in regards to being able to do certain jobs. He
asked if the department would need a larger truck.
Public Works Director Hoag stated the next sized truck up from the F-350 would
be a dump truck and this would not be a suitable replacement vehicle for the
department at this time. Staff did not recommend the F-250 because the cost
difference between this and the F-350 is about $800 and the F-350 is a better
vehicle for the City's needs.
Mayor Harpstead asked if there would be additional attributes to this truck.
Public Works Director Hoag stated Staff would recommend having a power
tailgate added to this vehicle.
Councilmember Holden asked what color the truck is.
Public Works Director Hoag stated the truck is currently white.
Councilmember Holden asked the Council about leaving the truck white and
adding City logos to the vehicle in order to identify it.
Mayor Harpstead stated he would not be opposed to this option.
Councilmember Holden recommended that the truck remain white and the City's
logo be added to it.
MOTION: Councilmember Holden moved and Councilmember Holmes
seconded a Motion to Authorize The Purchase of a White 2010
Ford F-350 and Related Equipment for an Amount Not to Exceed
$29,000.00 Plus Tax, License, and Registration. The motion
carried unanimously (5-0).
MR—DEN HILLS CITY COUNCIL—December 14, 2009 28
8A. Authorization to Purchase a Ford F-350 (continued)
Councilmember Holden directed Staff to look into several dealers to ensure a
good price.
C. Renewal of the Police Services Agreement with Ramsey County
Sheriff's Department for a Three Year Term Beginning January 1,
2010, and Ending December 31, 2012
City Administrator Moorse stated the Council, at its November 30, 2009 meeting
tabled the renewal of the Sheriff's Police Service Agreement for additional
information regarding the 2010 police services budget, and how the budget relates
to the level of service and the agreement; as well as to consider a one year extension
rather than a three year extension. Mayor Harpstead and City Administrator
Moorse met with the Sheriff's Department staff to discuss the agreement, the level
of service, and the estimated 2010 budget. The estimated 2010 budget was
provided to the Council for their review. The budget amount reflects the
continuation of the current patrol deputy staffing in Arden Hills, and the final year
of the two-year phase-in of a revised cost allocation formula that has benefitted
Arden Hills. The City could terminate any agreement with a nine month written
notice.
Mayor Harpstead stated in 2011 there will be a further cost allocation that will be
based on the usage of the investigator costs and this will favor Arden Hills. They
have begun to look at the frequency of calls as it pertains to the patrol costs. There
is an adequate escape clause.
Councilmember Grant stated on page 1 the patrol deputies' cost of $675,737.07
and on page 3 the patrol deputy assigned cost is listed as $657,430.15. He asked
why there was a difference in these two figures.
Mayor Harpstead stated that the difference can be found on page 4 which details
the patrol car for the Rice Street corridor which is $18,306.92.
Councilmember Grant stated the initial write up from Staff indicated that the
24652 power shift squad responds to calls in all the contract cities, the allocation of
costs related to this squad is based upon the estimated relative call volume in the
cities related to this squad. He asked why Gem Lake and North Oaks do not pay
anything for this car since it responds to calls in all of the contract cities.
ARDEN HILLS CITY COUNCIL—December 14, 2009 29
8C. Renewal of the Police Services Agreement with Ramsey County Sheriff's
Department (continued)
Mayor Harpstead stated that his understanding is that "in all contract cities" are
the words of Administrator Moorse and you would need to reference the chart to
see if this particular car was called into these areas.
City Administrator Moorse stated the time this vehicle spends in either Gem Lake
or North Oaks is very minimal and this .was taken into consideration when
allocating the costs.
Councilmember Grant restated that Arden Hills should not be charged for a patrol
car that is designated to a street or corridor that is not part of Arden Hills.
Councilmember Holden asked how it was calculated how much time this patrol
car spent in each City.
Mayor Harpstead stated this was based on actual number of calls not actual
minutes.
Councilmember Holden clarified that based on that the charge would be for when
an additional car came into the City since Arden Hills was paying for a separate
24/7 vehicle or the Arden Hills car was in Shoreview and it had to come into Arden
Hills.
City Administrator Moorse stated that this is not clear in these documents. There
are a large number of call types that do require more than one squad car be present
and would assume that the majority of the calls would be when there is more than
one squad car required.
Councilmember Grant asked if the Arden Hills car gets called out to assist another
community if Arden Hills would get credit for their car being outside of Arden
Hills.
Mayor Harpstead stated the Arden Hills car gets called out to Shoreview and
Shoreview's cars are the one predominately called into Arden Hills.
Councilmember McClung stated the Arden Hills car also spends time in Vadnais
Heights and Little Canada.
Councilmember Holmes asked for additional clarification on the economies of
scale.
ARDEN HILLS CITY COUNCIL—December 14, 2009 30
8C. Renewal of the Police Services Agreement with Ramsey County Sheriff's
Department (continued) ;
Mayor Harpstead explained to Councilmember Holmes that the cost per capita
would be less for Shoreview based on their larger population. Page 3 shows that
Shoreview has 10.3 deputies and in order to be equal to the number that Arden Hills
has they would need to be at 10.8. Shoreview also subcontracts .8 of their deputies
to North Oaks. This means that Shoreview actually has 10 patrols to cover 25,000
people and Arden Hills has 5.4 deputies to cover 10,000 people.
Councilmember Holmes stated if Arden Hills has 5.4 deputies this would mean
that they do not have as much to do in Arden Hills and they are spending more time
in Shoreview.
Mayor Harpstead stated Arden Hills does have a lower call frequency than some
cities. Arden Hills could have negotiated the contract based on per capita but then
they would not have someone present 24/7.
Councilmember Holmes stated Arden Hills does not have coverage 24/7 now and
the contract should be based on population.
Councilmember Holmes stated this needed to be looked at closer.
Mayor Harpstead stated it would be appropriate to take the overall service level of
the entire cities and look at that rate per capita. You would be at a number that is
higher than the number that was cited earlier for Shoreview.
Councilmember Holmes stated this needed to be looked at closer.
Councilmember Holden stated Arden Hills has several non-profit organizations in
the City. She asked if there was a way that the City could recuperate public safety
costs from these organizations since they do not pay property taxes.
Finance Director Iverson stated Staff would look into this and get back to the
Council in a work session.
Mayor Harpstead asked that the number of calls be included in this research.
MOTION: Councilmember McClung moved and Councilmember Holmes
seconded to Wave the Rules and Extend the Meeting an Additional
30 Minutes.
ARDEN HILLS CITY COUNCIL—December 14, 2009 31
8C. Renewal of the Police Services Agreement with Ramsey County Sheriff's
Department (continued)
SUBSTITUTE MOTION: Councilmember Grant moved and Councilmember
Holden seconded a motion to adjourn. The motion carried
unanimously (3-2).
Ayes: Councilmembers Grant, Holden, Holmes
Nays:Mayor Harpstead, Councilmember McClung
9. COUNCIL COMMENTS ANDRE UESTS
None.
ADJOURN
Mayor Harpstead adjou e Regular City Council Meeting at 9:34 p.m.
00
S n Ha tead S-U K,-,.,,,Iverson
Mayor Acting City Administrator